950,000 to Repay Homebuyer Tax Credit

September 14, 2010 by  
Filed under Short Sale/Loan Modification Blog

950,000 Homebuyers are to return the first-time homebuyer tax credit for 2009!!!

Apparently over half of the 1.8 million homebuyers who took the credit on their 2009 tax returns are required to payback the credit.  So what was the issue?

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The issue is that there were 2 separate tax credits.  One which was in 2008 and the other in 2009.  Those who bought their homes in 2008 were able to deduct 10% or $7,500, whichever amount was less; that was a no interest loan that was to be repaid in 15 years.  Although for those who purchased in 2009, they received a similar credit as a rebate that they were able to keep. 

FHA Sets Stringent Rules

September 7, 2010 by  
Filed under FHA Sets Stringent Rules

FHA Requires Certain Credit Score Standards

FHA is known to be the most flexible of all first-time homebuyer loans.  Well, now they are even becoming a bit more stringent when it comes to lending.  They are now requiring that homebuyers present a minimum credit score of 500 to qualify for an FHA mortgage.

Government Modification Programs Fall Far Behind

Is the HAMP program meeting its goals?

The HAMP program that is offered by the government has much work to do if it wants to meet its end of the bargain.  The initial promise was to help 4 million homeowners get out of a situation where they might get foreclosed on.  Unfortunately we are very far off from meeting that goal; in July the HAMP program completed 36,695 modifications, while private mortgage programs completed over 120,000.  Why are homeowners turning to private programs as oppose to the government program offered?

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In this year so far, with combined efforts from government and private programs, a completion of 1.13 million modifications have gone through.  This is not including those thousands who have been terminated from the program.  We are not on track to hit that 4 million wishful number.  Any suggestions?

Housing Assist Coldwellbanker